Credit Acceptance CACC
United StatesFinancial Services · Credit ServicesUSD
633.33 USD (+18.9%)
3 analysts
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Credit Acceptance Corporation is a US financial company specializing in high-risk (subprime) consumer loans for used car purchases, offering direct consumer financing and loan programs to car dealerships.
Key points
from its scores- ✓High-quality business9.6
- ✓Very solid balance sheet8.5
- ✓Strong growth8.1
- ✕Little or no dividend1.4
- ✕Unfavourable risk and backdrop3.8
AI analysis
bottom line, main risk, context and newsBusiness quality and profitability are outstanding, but regulatory risk and the cyclical nature of subprime credit warrant caution before adding to the position.
Credit Acceptance shows exceptional profitability (ROE of 31.93%, operating margin of 52.56%) and earnings growth of 70.60%, but its valuation (P/E 11.74) already discounts the structural regulatory risk of subprime lending, which is the main factor to watch.
The main risk is regulatory: Credit Acceptance operates in the subprime segment, an area under constant scrutiny from the CFPB and states, where a new lawsuit or restrictive regulation could limit its lending and collection practices, directly impacting its profitability.
Context and risks
Credit Acceptance operates in high-risk consumer lending (subprime) in the US, a sector under active regulatory scrutiny by the CFPB and state attorneys general. Although the company has recently won lawsuits, the risk of new litigation or regulatory changes that could limit its lending and collection practices is a material structural risk to its business model.
Is Credit Acceptance stock cheap or expensive?
at the analysis dateOn P/E and Price / book, it trades 37% above the Financial Services median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 11.7 | 13.7 | −14% |
| Price / book | 3.5 | 1.9 | +88% |
| Price / sales | 4.3 | 3.5 | +24% |
Sector: median of the 351 Financial Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.2 out of 10 (median for Financial Services: 5.2).
Average analyst target: 633.33 USD, +18.9% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 9.6 (sector 8.8), Growth 8.1 (sector 6.9).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Financial Services medianValuation
- P/E
- 11.7
- Forward P/E
- 9.7
- Price / book
- 3.5
- Price / sales
- 4.3
- PEG
- 1.77
- Market cap
- 5.6B USD
- Enterprise value
- 11.8B USD
Profitability
- ROE
- 31.9%
- ROA
- 5.8%
- ROIC (approx.)
- 8.7%
- Gross margin
- 94.7%
- Operating margin
- 52.6%
- Net margin
- 38.5%
Solvency
- Total debt
- 6.3B USD
- Net debt
- 6.3B USD
- Cash
- 1.4M USD
- Debt / equity
- 395.63
- Current ratio
- 4.83
- Quick ratio
- 4.55
Growth
- Revenue growth
- +9.5%
- Earnings growth
- +70.6%
- EPS (TTM)
- 45.35 USD
- EPS (forward)
- 54.80 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 1.40
- Analyst consensus
- Hold (3)
- Target price
- 633.33 USD
- 52-week range
- 401.90 – 668.86
Recent news
All CACC news →Compare it with its sector
All 351 in Financial Services →Frequently asked questions about Credit Acceptance
Is Credit Acceptance stock cheap or expensive?
On P/E and Price / book, it trades 37% above the Financial Services median on average. Valuation score: 6.2 out of 10 (median for Financial Services: 5.2). Average analyst target: 633.33 USD, +18.9% versus the price. This is not investment advice.
What score does Credit Acceptance get on MeridIAn Screener?
It scores 6.5 out of 10, rank 507 of 2,130 (better than 72% of the companies analysed). Its strongest category is Quality / Moat (9.6) and its weakest, Dividend (1.4). Analysis of 08/10/2026.
What is Credit Acceptance's P/E ratio?
Its P/E is 11.7: the share price equals 11.7 times earnings per share over the last 12 months. The Financial Services median is 13.7. Based on the earnings analysts expect, the forward P/E is 9.7.
How much is Credit Acceptance worth on the stock market?
Its market capitalisation is 5.6B USD.
Does Credit Acceptance pay a dividend?
It pays no dividend, or almost none.
How has Credit Acceptance stock performed over the last year?
It has risen 11.2% over the last year, excluding dividends. Over the last 52 weeks it has traded between 401.90 and 668.86 USD. Past performance does not guarantee future results.
What do analysts think of Credit Acceptance?
3 analysts cover it; their average recommendation is “Hold” and their average target is 633.33 USD (+18.9% versus the price). It is an estimate, not market data.